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Home>Levelset Community>Legal Help>When processing a lien .... How much is the cost to process a foreclosure on a lien when all paper work is in order? Second ? , promissory note- what is the process and collecting cost on a promissory when a customer default? in other words, what is the step by step process and the cost.

When processing a lien .... How much is the cost to process a foreclosure on a lien when all paper work is in order? Second ? , promissory note- what is the process and collecting cost on a promissory when a customer default? in other words, what is the step by step process and the cost.

CaliforniaLawsuitLien DeadlinesMechanics Lien

A promissory note was sign by my customer on work that has been completed. She has paid a small amount already but do to her finance i was generous to give her ample time to paid back the balance due to me in 6 months. interest free . So i would like to be prepare for any unexpected situation .

1 reply

Sep 27, 2018
I'm sorry to hear about that, and I can appreciate granting a little leniency when it comes to payment timeframes. First - to directly answer the question, foreclosing a lien and enforcing a promissory note will both require legal action, so the cost of doing so may vary significantly depending on the attorney or firm a claimant utilizes. Reaching out to a few local attorneys, discussing the matter, and asking for a quote on what representation might cost would likely provide a good range of potential costs. Further, for both a lien foreclosure action and enforcing a promissory note, this process would likely begin with collecting and organizing all relevant information, communication, and documentation regarding the payment claim and then filing an action in court - but the specifics of that process could vary depending on the claimant and their attorney. Changing gears a bit, I'll assume that a mechanics lien filing has already taken place since you've asked about foreclosure (but if it hasn't, this article may be of use - Mechanics Lien California: How to File a CA Mechanics Lien). Note, of course, that a California mechanics lien has strict filing deadlines, and you can learn about those here. When a mechanics lien has been recorded, it's important to keep an eye on the deadline to enforce the lien. In California, the deadline to foreclose a filed mechanics lien is 90 days from the date on which the lien was recorded. If that deadline passes and the recorded lien has not been foreclosed, the lien is very likely no longer enforceable. This deadline is strict, but a claimant can extend the foreclosure deadline with a Notice of Credit - though that extension must occur before the deadline to foreclose. If a deadline is missed, though, it's important to remember that there are other options for recovery - such as an action to enforce a promissory note or through a potential breach of contract claim. Further, the threat to take action can often be just as effective as actually taking that action - like sending a Notice of Intent to Lien, a Notice of Intent to Foreclose, or a demand letter via an attorney threatening legal action.
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